Rwanda's Private Sector Federation: Eritrean Investor Considers Lawsuit Over Lake Kivu Land Lease Dispute

• An Eritrean investor is considering taking a land lease dispute over Lake Kivu property to court.
• The dispute centers on a 2024 lease agreement between the investor and the new owner of the plot.
• The investor claims he has continued to pay rent despite the change in ownership and alleges exorbitant rental demands.
• A second mediation meeting was held at Rubavu District, but no agreement was reached.
• The case highlights the importance of reviewing lease agreements and protecting contractual rights.

Abraham claims that the sudden ownership change exposed him to pressure to either vacate the premises or accept what he describes as exorbitant rental amount demanded by the new owner.

A commercial land lease dispute has erupted on the shores of Lake Kivu in Rwanda, pitting an Eritrean investor against the new owner of a plot. The disagreement centers around a 2024 lease agreement for the property on which Lakeside View Lounge and Restaurant operates. Awtseana Welday Abraham, the owner of the restaurant, claims he signed a 10-year lease with Eugene Sibomana, who later sold the land to Belinda Umwali without informing him. Abraham asserts that he has continued to pay monthly rent to Sibomana despite the change in ownership. He alleges that the new owner has demanded exorbitant rental amounts and blocked access to his premises, disrupting business operations. The dispute has been ongoing since August 17, when a second mediation meeting was held at Rubavu District, but no agreement has been reached.

The lease agreement, signed in January 2024, provides for renewal upon mutual written consent by both parties. Article Six of the agreement stipulates that disputes should be resolved through amicable settlement before resorting to court action. However, Abraham has opted to pursue a legal solution, citing his investment of $350,000 in establishing and renovating the business. The Private Sector Federation (PSF) in Rubavu had previously mediated between the parties, advising Abraham to take Sibomana to court. Lawyers advising clients with commercial leases in Rwanda should be aware of the potential for disputes over lease agreements, particularly when there are changes in ownership.

This case highlights the importance of reviewing and understanding the terms of a lease agreement, including renewal clauses and rent increases. The dispute underscores the need for clear communication between landlords and tenants, especially during changes in ownership. Abraham's decision to pursue a legal solution serves as a reminder that contractual rights and investments must be protected through proper legal processes. This case also emphasizes the role of mediation in resolving business disputes, but ultimately, a court may be necessary to resolve such matters.

Lawyers advising clients with commercial leases in Rwanda should be aware of the potential for disputes over lease agreements, particularly when there are changes in ownership. This case highlights the importance of reviewing and understanding the terms of a lease agreement, including renewal clauses and rent increases.

Source: Original reporting via The New Times